Auto Loan Calculator
Calculate your monthly car payment, total interest, and full amortization schedule.
$489.15
per month for 60 months
Loan Amount
$25,000
Total Payment
$29,349
Total Interest
$4,349
Interest / Principal
17.4%
Formula
The calculator uses the standard amortization formula to determine your monthly payment:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where M = monthly payment, P = loan principal, r = monthly interest rate, n = number of payments
Worked Example
You purchase a $30,000 car with a 10% down payment ($3,000) at 6.5% interest over 60 months (5 years):
- Loan amount: $27,000
- Monthly interest rate: 6.5% ÷ 12 = 0.542%
- Monthly payment: $528
- Total paid over 5 years: $31,697
- Total interest paid: $4,697
Common Questions
How does my credit score affect my rate?
Borrowers with excellent credit (750+) typically qualify for rates 2–4% lower than those with fair credit (650–699). Even a 1% difference saves thousands over the loan term.
What's a good down payment?
A 20% down payment reduces your loan amount and shows lenders you're serious. However, 10% is common, and some loans require as little as 0% (though rates are higher).
Should I choose 36, 60, or 72 months?
Shorter terms (36–48 months) have higher payments but less total interest. Longer terms (60–72 months) have lower payments but you pay more interest overall. Consider your budget and how long you plan to keep the car.
Can I pay off my auto loan early?
Yes, most auto loans allow prepayment without penalty. Paying extra principal each month saves significant interest and can shorten your loan by years.
Key Takeaways
- APR, not just interest rate, reflects the true cost — always compare APRs, not just rates.
- A 0.5% lower rate on a $25,000 loan saves ~$350 over 5 years — it's worth negotiating.
- Longer loan terms (60–84 months) are becoming common but extend your exposure to vehicle depreciation and interest.
- Consider the total cost of ownership: insurance, maintenance, fuel, and depreciation, not just the monthly payment.
Use this calculator when: you're shopping for a vehicle and want to understand monthly payments, you want to compare different loan terms (36, 48, 60, or 72 months), you're pre-approved and want to see different interest rate scenarios, or you want to calculate total interest cost before signing loan paperwork.
- Focusing only on the monthly payment: A 72-month loan has a lower payment but costs ~$2,000 more in interest than a 48-month loan. Consider total cost, not just the payment.
- Not shopping around for rates: Your bank's rate is often 2-4% higher than credit union rates. Shop 3-5 lenders before buying.
- Being "upside down" on a trade-in: If you owe $15k on your current car but it's worth $12k, rolling that debt into a new loan extends your underwater situation.
- Underestimating total ownership cost: A cheap car with high insurance, maintenance, and fuel costs more than a reliable car with low insurance and maintenance.
- Get pre-approved before shopping: Pre-approval shows dealers you're serious and gives you leverage to negotiate.
- Consider used vs. new: A 2-3 year old car (used lease return) avoids 40% depreciation of a new car while still being reliable.
- Pay down to 50% LTV quickly: Loan-to-value above 80% means you're paying insurance and interest on a depreciating asset. Build equity fast.
- Make extra payments early: Paying an extra $50/month saves ~$500 in total interest and gets you out of the loan faster.